Investment Rating - The report upgrades the investment rating to "Buy" with a target price of HK4.63 [1]. Core Insights - The company reported a strong performance in 1H24, with revenue and net profit increasing by 40.1% and 453.9% year-on-year, reaching RMB 767.5 million and RMB 1.15 million, respectively [1][3]. - The growth is attributed to improved smartphone demand, increased shipments of camera modules (CCM), and a stable operating expense ratio [1][2]. - The average selling price (ASP) of camera modules has shown a year-on-year increase of 10.5%, indicating a recovery in demand and profitability [1][3]. Summary by Sections Financial Performance - In 1H24, the company's revenue reached RMB 767.5 million, a 40.1% increase year-on-year, while net profit surged to RMB 1.15 million, reflecting a 453.9% growth [1][3]. - The company maintained its FY24E shipment guidance, with total CCM shipments expected to reach approximately 430 million units, a 15% year-on-year increase [1][2]. Market Dynamics - The automotive CCM segment saw a remarkable 15-fold increase in sales volume, indicating strong demand in the non-smartphone market [2]. - The company has successfully qualified with over 20 clients, including major automotive manufacturers, and is diversifying its product offerings beyond smartphones [2]. Product Segmentation - The report highlights that the non-smartphone CCM segment is expected to contribute approximately 3% to total shipments, with significant growth potential in the automotive and IoT sectors [2][3]. - The average selling price of camera modules is projected to reach around RMB 32.6 by 2H24, reflecting a positive trend in pricing and demand recovery [1][3]. Future Outlook - The company is expected to achieve a compound annual growth rate (CAGR) of 31% in net profit from FY24E to FY26E, driven by quality growth and recovery in sales and margins [3][4]. - The new target price of HK$5.44 is based on a FY25E price-to-earnings ratio of 14.1, indicating a favorable valuation compared to historical averages [4].
丘钛科技：逐渐回到正确的轨道上